As a result of the government’s various cost-saving initiatives in the power and energy sectors, the interim government has been able to save a total of Tk 14,131.81 crore in the last one year. These savings have come through various measures such as amending laws, international tenders, forming consortiums, reducing system losses, increasing revenue, cost-cutting projects, and increasing domestic capacity.
The interim government has been able to save Tk 14,131.81 crore in the last one year as a result of the government’s various cost-saving measures in the power and energy sectors.
Amendment of laws and formation of consortium to save costs
After assuming office on August 8, 2024, the government repealed the ‘Rapid Increase in Power and Energy Supply (Special Provisions) Act, 2010’ and took initiatives to save government money in the energy sector by following the Public Procurement Rules of 2008.
- Saving Tk 3,027 crore by purchasing 49 cargoes of fuel at a low premium through 23 companies.
- Agreement between Petrobangla and Oman-based OQ Trading Limited for the import of 17 cargoes of LNG, which will save Tk 3,081.3 crore.
- Formation of consortium with domestic and foreign banks, the World Bank’s IDA guarantee facility of US$ 350 million will be increased to $ 700 million in 2027, saving Tk 2,772 crore in seven years.
Government-to-government agreements and international tenders saved Tk 7,540 crore in the fiscal year 2024-25.
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Savings and revenue increase in the small sector
- Savings of Tk 240 lakh in the purchase of explosives for rock crushing.
- Annual revenue increase of Tk 640 crore 71 lakh from Karnaphuli Gas Distribution and KAFCO agreements.
- Annual revenue increase of Tk 463 crore 26 lakh from Jalalabad Gas and LafargeHolcim agreements.
In February 2025, Petrobangla and its distribution companies saved Tk 218 crore 94 lakh in the fiscal year 2024-25. Bangladesh Energy Regulatory Commission (BERC) has increased revenue by Tk 982.2 million annually by reducing gas prices at the retail level and revising prices for industrial and captive tiers.
Increasing BAPEX capacity and supplying to the national grid
- Plan to explore and develop 150 wells, purchase three rigs.
- Supplying 82 MMCFD of gas per day from 19 wells, saving Tk 1,943 crore.
Savings in various infrastructure projects
- 193.29 crore taka from SPM and double pipeline
- 451.1 crore taka from Chittagong-Dhaka fuel pipeline
- 310.4 crore taka from Bakhrabad-Meghnaghat-Haripur pipeline project (Amendment-1)
- 276.4 crore taka from Gas Station Establishment and Renovation Project (Amendment-1)
- 97.5 crore taka from Eastern Refinery
- 82.2 crore taka from Bogra-Rangpur-Saidpur gas line
Savings in wells and gas distribution network
- 65.5 crore taka from 7 well workover
- 33.3 crore taka for construction of gas network in northern region
- 21.1 crore taka for prepaid meter project
- 133.3 crore taka for development of Faujdarhat-Sitakunda-Mirsarai network
Source: Kaler Kantho
